: RBI revises priority sector lending norms #FinanceIndia #StockMarketNEWS #Business IANS Mumbai The Reserve Bank of India (RBI) on Friday released its revised priority sector lending guidelines

@StockMarketNEWS Mon 07 Sep, 2020

Posted in: #Business #FinanceIndia #StockMarketNEWS

RBI revises priority sector lending norms #FinanceIndia #StockMarketNEWS #Business
IANS

Mumbai

The Reserve Bank of India (RBI) on Friday released its revised priority sector lending guidelines wherein the credit limits have been raised for farmer producer organisations, renewable energy and for health infrastructure.

As announced by the RBI Governor, startups have been brought under the ambit of priority sector lending. Bank finance of up to Rs 50 crore has been included as a fresh category under priority sector, an RBIstatement said.

The RBI statement said that a higher credit limit has been specified for Farmers Producers Organisations (FPOs) or Farmers Producers Companies (FPCs) undertaking farming with assured marketing of their produce at a pre-determined price.

Further, “loan limits for renewable energy have been increased (doubled)??? and “credit limit for health infrastructure (including those under ‘Ayushman Bharat’) has been doubled???.

Apart from startups, loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps and loans for setting up Compressed Bio Gas (CBG) plants have been included as fresh categories eligible for finance under priority sector.

“Reserve Bank of India has comprehensively reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities and bring sharper focus on inclusive development, after having wide ranging discussions with all stakeholders,??? it said.

As per the central bank the revised guidelines will enable better credit penetration to credit deficient areas, increase the lending to small and marginal farmers and weaker sections, boost credit to renewable energy, and health infrastructure.

The guidelines aim to address regional disparities in the flow of priority sector credit, higher weightage have been assigned to incremental priority sector credit in ‘identified districts’ where priority sector credit flow is comparatively low and the the targets prescribed for “small and marginal farmers??? and “weaker sectionp???H?Z[??[??X?Y[?H?YX[?????H??H?][Y[???H????H?]????[?]H?X??[?[?????X?Y????H?]?[?[Y?